Gold crosses $2300 amid rising Middle East tensions

Fundamental News and Triggers

  • Gold surges beyond $2300 (~Rs 69400), propelled by robust US data and concerns in the Middle East. Gold’s latest surge was supported by Israel’s attack on the Iranian embassy in Syria on April 1, even though this week saw a spike in US rates and a strengthening US dollar.
  • A tight job market, high US Treasury rates, and a strong US dollar offset geopolitical concerns.
  • According to the CME FedWatch Tool, traders presently give the possibility of the US central bank lowering borrowing prices a 58% chance of happening in terms of future interest rate changes by the Federal Reserve.

Technical Triggers

  • Gold has moved to unchartered territory with prices seeing hyperbolic move above $2300 (~ Rs 69400). If this momentum continues, the next resistance level is $2350 (~Rs 71000). But as oscillators are in an overbought zone, one needs to be very cautious.
  • Silver prices have finally given a break out of its range at $26 (~Rs 77000). Next resistance to watch for is $27 (~Rs 80000), if that is also sustained, then no one can stop Silver from moving towards the $30 (~Rs 90000) target in 2024.

Support and Resistance

 

 

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